The Naira had a strong comeback as the exchange rate dropped below N900/$1 on peer-to-peer (P2P) platforms like Binance, for the first time since August 2023.
Compared to the N1,120/$1 it traded for on Thursday, this is a rise of N170, or 15.18%, in the value of the local currency. In addition, the naira is strengthening for the second day in response to the Central Bank of Nigeria’s decision on Thursday to reduce part of its foreign exchange backlog.
Data from the well-regarded Binance Crypto trading site indicated that the conversion rate was impressively at N855 to $1 by 6:30 p.m. on Friday. This event demonstrates the Naira’s remarkable recuperation path.
Meanwhile, the black market, which is sometimes used as an unofficial barometer of the strength of the currency, has conversion rates for $1 in cash transactions that range from N1000 to N1,100.
Speculators’ eagerness to exit their short positions, coupled with their hurry, underlines their expectation of additional rises in the Naira.
On Tuesday, Business Insider Africa reported that the exchange rate between Nigeria’s naira and the US dollar has dropped to its lowest level ever on NAFEM, where official forex is sold.
That signified a whopping 20.5% devaluation, the naira’s lowest level ever recorded versus the dollar. Previously, the lowest figure was N848/$1 on October 17, 2023, representing a one-day 8.17% devaluation at the time.
